Hyderabad, the vibrant capital of Telangana, remains one of India’s most promising real estate markets. Known for its robust IT sector, world-class infrastructure, and business-friendly policies, the city is witnessing significant growth in both residential and commercial properties. As we look toward 2025, this blog delves into the Hyderabad real estate market, with a primary focus on open residential plots and agricultural land, analysing growth areas, price trends, and the factors driving the sector’s potential. Supported by recent survey reports and news articles, we’ll explore why open plots are a hotspot for investment, examine sales and price trends for various property types, and highlight the Telangana government’s strategies to propel real estate growth.
Growth Areas in Hyderabad’s Real Estate Market
Few facts to consider before going into the details of the blog:
- For the 6th time, Hyderabad is “The Best Indian City to Live In,” according to the Mercer’s Quality of Living Survey, 2023.
- The International Institute for Management Development (IMD), in collaboration with the Singapore University of Technology and Design (SUTD), has released the IMD Smart City Index, listing the smart cities in the world. According to this survey, Hyderabad is the fourth smartest city in India.
- Knight Frank India and the Confederation of Indian Industry (CII) jointly released the survey report “India Real Estate: A Decade from Now,” which predicts a significant surge in Hyderabad’s gross domestic product (GDP) at an average of 8.47%, positioning it as the third fastest-growing city globally between 2019 and 2035.
Hyderabad’s real estate market is thriving, with certain regions emerging as key growth hubs. According to a CREDAI Hyderabad and CRE Matrix report, the city recorded sales of 65,177 residential units in 2024, totalling Rs 1.13 trillion, with the northwest region leading at Rs 71,926 crore in property sales. Areas like Madhapur, Miyapur, Manikonda, Serilingampally, Tellapur, Narsingi, Patancheru, Kandukuru(4th City/Pharma City), and Gandi Maisamma are driving this boom, thanks to their proximity to IT hubs and enhanced connectivity.
The peripheral areas—west, south, and east—are also gaining momentum. A Hindustan Times report projects a 10-20% price hike in these zones over the next 3-5 years, driven by the upcoming Hyderabad Metro Phase II. The Western Periphery, including Kokapet, Neopolis, and Narsingi, has seen a 50% price surge over the past five years, with an additional 10-15% increase expected by 2025. Affordable and mid-segment housing is expanding in areas like Tellapur, Lingampally, Bandlaguda, and Miyapur, making them attractive for open plots and agricultural land investments.
Shamshabad, near the Rajiv Gandhi International Airport, is another emerging hotspot, particularly for eco-friendly developments like Woods Shamshabad, which integrates residential plots with sustainable features. Its strategic location, with access to the Outer Ring Road and proximity to the upcoming Regional Ring Road (RRR) station, enhances its appeal for plot buyers.
Focus on Open Residential Plots and Agricultural Land
Open residential plots and agricultural land are increasingly sought-after asset classes in Hyderabad’s real estate market, driven by affordability, investment potential, and infrastructure growth. A report by The Hindu notes that the scarcity of Transferable Development Rights (TDRs) has made open plots a valuable commodity. The state government’s shift to TDRs instead of monetary compensation for land acquired under the Strategic Road Development Plan has further boosted their significance.
Agricultural land, while less speculative than residential plots, is also gaining attention, particularly in areas along the proposed Regional Ring Road. The Telangana government’s plan to conduct a high-tech survey of agricultural lands using advanced technologies aims to resolve land-related disputes, potentially increasing investor confidence in these assets.
Why Open Plots Are Poised for Growth
The scope for growth in open residential plots is underpinned by several key factors:
- Rising Population and Housing Demand: Hyderabad’s growing population, fuelled by migration to its IT and industrial hubs, is increasing demand for affordable land options. Open plots cater to middle-class buyers and investors seeking cost-effective entry points into the market.
- Infrastructure Development: The Hyderabad Regional Ring Road (RRR), and proposed Ring Rail Project connecting towns like Sangareddy, Toopran, Choutuppal, Amangal, and Shankarpally are set to enhance accessibility to peripheral areas, driving demand for open plots.
- Affordability and Flexibility: Open plots are significantly cheaper than built properties like flats or villas, offering buyers the flexibility to build customized homes or hold for long-term appreciation.
- Investment Potential: With peripheral areas expected to see a 20-30% price increase in the next few years, open plots offer strong capital appreciation potential, especially in areas like Kokapet and Tellapur.
- Regulatory Support: The Telangana Real Estate Appellate Tribunal’s enforcement of RERA regulations ensures transparency, boosting buyer confidence in plot purchases.
Sales and Price Trends: Farm Lands, Open Plots, Flats, and Villas
The Hyderabad real estate market has exhibited diverse trends across property types over the past few years, as outlined below:
Farm Lands
Farmlands, particularly in areas along the Regional Ring Road, have seen steady demand. But, a HYDRAA warning against buying farm plots due to illegal layouts highlights regulatory challenges, yet the government’s planned high-tech land survey could stabilize this segment. Price growth has been steady, with limited speculative activity compared to residential properties.
Open Plots
Open residential plots have maintained consistent demand, especially in peripheral areas. The Telangana Housing Board’s auction of plots in KPHB Colony, ranging from 30 to 272.22 square yards at Rs 80,000 to Rs 1.25 lakh per square yard, reflects strong market interest. Prices for open plots in areas like Shamshabad and Kollur are rising, driven by infrastructure projects like the RRR and Metro Phase II. A PropTiger.com report notes a 5% quarterly price increase in Q1 2025 for residential real estate, with open plots contributing to this trend in affordable segments. In recent times, areas like Meerkhanpet, Kandukuru, and Kadthal areas are high in demand for open plots as the Telangana Government’s popular 4th City or Pharms City is being in the forefront of the media.
Flats
Flats have been a cornerstone of Hyderabad’s real estate market, particularly in the northwest. However, a Knight Frank India report indicates a slight decline in registrations, with 5,444 units registered in January 2025 compared to 5,454 in January 2024, and a 16% drop in February 2025 (5,900 units vs. 7,135 in 2024). Despite this, premium flats priced above Rs 1 crore saw a 12% rise in registrations year-on-year, reflecting a trend toward “premiumization.” Average prices reached Rs 7,412 per square foot in Q1 2025, up 5% quarterly.
Villas
Villas, particularly in upscale areas like Kokapet and Narsingi, have followed a similar trajectory to flats. The Hindustan Times reports a 50% price surge in these areas over five years, with only two ultra-luxury homes (priced above Rs 40 crore) sold in 2024, indicating a slowdown in the ultra-luxury segment. However, mid-to-high-end villas continue to attract buyers, with prices expected to rise 10-15% by 2025.
Key Takeaway
Farm lands remain a niche market with stable but modest growth, while open plots are gaining traction due to affordability and infrastructure-driven appreciation. Flats and villas, despite a recent dip in sales volume (down 16% in February 2025), show resilience in the premium segment, with prices rising steadily at 5% quarterly.
Telangana Government’s Plans and Strategies
The Telangana government is implementing strategic initiatives to bolster Hyderabad’s real estate market, with a focus on infrastructure and policy reforms:
- Hyderabad Regional Ring Road (RRR): Spanning 30–50 km from the Outer Ring Road, the RRR will connect 17 national and state highways, linking towns like Sangareddy, Toopran, and Choutuppal. This project is expected to drive real estate growth in peripheral areas, particularly for open plots and agricultural land.
- Hyderabad Metro Phase II: By expanding metro connectivity to the west, south, and east, this project will boost property demand and prices in peripheral regions, making them ideal for plot investments.
- Policy Reforms: The ICT 2.0, MSME, and Data Center policies aim to stimulate economic activity in peripheral areas, attracting businesses and residents. These policies support the development of industrial corridors, increasing demand for nearby residential plots.
- Land Surveys and RERA Enforcement: The government’s high-tech survey of agricultural lands will enhance transparency in land transactions, while strict RERA compliance, as seen in the Telangana Real Estate Appellate Tribunal’s actions, ensures a stable regulatory environment.
- HYDRAA Initiatives: The Hyderabad Disaster Response and Asset Protection Agency (HYDRAA) is cracking down on illegal layouts, as seen in Peerzadiguda, to protect buyers and maintain market integrity, particularly for open plots.
- Expansion of HMDA region: The Hyderabad Metropolitan Development Authority (HMDA) region has expanded from 7,257 sq. km to 10,472.71 sq. km in March 2025, covering 11 districts (adding Mahabubnagar, Nagarkurnool, Nalgonda, and Vikarabad to the existing Hyderabad, Medchal-Malkajgiri, Ranga Reddy, Bhuvanagiri, Sangareddy, Medak, and Siddipet). This expansion aligns with the Regional Ring Road (RRR) project, incorporating a 2 km buffer zone as the RRR Growth Corridor. It includes 1,257 villages across 70 mandals, the GHMC, and 40 municipalities.
- Future City Development Authority (FCDA): The Future City Development Authority (FCDA) is a special-purpose urban planning body established by the Telangana government in March 2025 to develop a Future City in 765.28 sq. km across 56 revenue villages in seven mandals of Ranga Reddy district, near the Rajiv Gandhi International Airport. Chaired by Chief Minister A. Revanth Reddy, the FCDA focuses on creating a world-class urban hub with multi-modal connectivity, metro expansion, and economic clusters like the Young India Skill University. It oversees areas between the Srisailam National Highway and Nagarjuna Sagar State Highway, with 36 villages transferred from the Hyderabad Metropolitan Development Authority (HMDA) to its jurisdiction. The FCDA aims to drive sustainable development, boost real estate (especially open plots), and support industrial and educational growth, aligning with Telangana’s Master Plan 2050. (Source: The Hindu, March 11, 2025)
These initiatives collectively position Hyderabad as a resilient and attractive real estate market, with significant growth potential for open plots and agricultural land.
Hyderabad’s real estate market is poised for robust growth in 2025, with open residential plots and agricultural land emerging as key investment avenues. Driven by population growth, infrastructure projects like the RRR and Metro Phase II, and supportive government policies, open plots offer affordability and high appreciation potential. While farm lands remain a stable but less dynamic segment, flats and villas show resilience in the premium market despite recent sales dips. With prices rising 5% quarterly and peripheral areas projected to see 10-20% hikes, Hyderabad remains a prime destination for real estate investment. The Telangana government’s strategic focus on connectivity, transparency, and economic growth ensures a bright outlook for the city’s property market.
References:
- Thanks to Grok
- CREDAI Hyderabad and CRE Matrix report (2024 sales data)
- Hindustan Times (Peripheral area price trends, March 11, 2025)
- The Hindu (TDRs and open plots, March 6, 2025)
- PropTiger.com (Q1 2025 price trends)
- Knight Frank India (January and February 2025 registration data)
- Telangana Today (2024 ultra-luxury sales)
- The Hindu (HYDRAA actions, May 22, 2025)